VZCZCXRO0285
PP RUEHDBU RUEHIK RUEHPOD RUEHPW RUEHYG
DE RUEHBUL #0505/01 0640826
ZNR UUUUU ZZH
P 050826Z MAR 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 7617
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC 0748
RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
RUEABND/DEA HQS WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS SECTION 01 OF 02 KABUL 000505 
 
DEPT FOR SCA/FO, SCA/RA, AND SCA/A 
DEPT PASS FOR AID/ANE 
DEPT PASS USTR FOR DELANEY AND DEANGELIS 
DEPT PASS OPIC 
DEPT PASS FOR TDA FOR STEIN AND GREENIP 
USOECD FOR ENERGY ATTACHE 
CENTCOM FOR CSTC-A 
NSC FOR JWOOD 
TREASURY FOR MHIRSON, ABAUKOL, BDAHL, AND MNUGET 
OSD FOR SHIVERS 
COMMERCE FOR DEES, CHOPPIN, AND FONOVICH 
 
SENSITIVE 
 
SIPDIS 
 
E.O.  12958 N/A 
TAGS: EAGR EAID ETRD ECON PREL AF PK IN
SUBJECT: REALIZING THE INDIAN WHEAT DONATION TO AFGHANISTAN 
 
REF: Delhi 79 
 
¶1. (U) This is an action request that has been coordinated with 
Embassies Islamabad and New Delhi.  Please see para 5. 
 
¶2. (SBU) Summary.  Post recommends that the Department instruct the 
three concerned embassies to demarche host governments to work to 
effect prompt transshipment through Pakistan of India's wheat 
donation to Afghanistan.  Milling the wheat and shipping bagged 
flour represents a way to overcome GOP phytosanitary concerns.  End 
Summary 
 
¶3. (SBU) From Embassy Kabul's perspective, it is increasingly clear 
that the Afghan, Pakistani and Indian governments will not be able 
to effect delivery of the GOI's very generous donation of 250,000 mt 
of wheat to Afghanistan without outside prodding.  This offer 
represents a very positive development from several different 
angles.  While Afghanistan's near-term food supply situation has 
improved somewhat, it will need food aid in the second half of 2009. 
 Realization of this Indian donation will not only improve supplies, 
but will also reduce (though probably not eliminate) pressure on the 
USG, the main donor so far, to provide additional food aid to 
Afghanistan.  Transshipment of the commodity through Pakistan could 
also represent a valuable confidence-building measure as we 
encourage the GIRoA and GOP to negotiate a new, more balanced 
Transit Trade Agreement allowing, among other things, freer 
transshipment between Afghanistan and India.  While there are other 
alternatives for delivering the aid, the most direct and probably 
cheapest is ground transshipment over Pakistan. 
 
¶4. (SBU) GOP officials have raised legitimate phytosanitary concerns 
regarding the possible presence of the karnal bunt fungus in Indian 
wheat.  According to an Afghan Agriculture Ministry official who 
participated in recent GIRoA-GOP talks on this issue in Islamabad, 
GOP officials declined to discuss transshipment modalities until 
their phytosanitary concerns were resolved.  Post understands that 
this concern would be overcome by milling the wheat into flour in 
India, and that such milling would not add excessively to the total 
cost. 
 
¶5. (SBU) Action Request.  Kabul therefore recommends that the 
Department instruct the three embassies concerned to demarche host 
governments along the following lines, tailoring to specific 
capitals as appropriate. 
 
-- The Indian donation of 250,000 mt of wheat to Afghanistan is a 
very welcome, generous action.  The U.S. would like to urge the 
governments of Afghanistan, Pakistan and India to work together to 
realize this donation as soon as possible. 
 
-- The USG welcomes President Zardari's commitment to allow and 
facilitate transshipment of the commodity across Pakistan. 
 
-- The U.S. also takes this opportunity to urge the GOP officially 
to lift its grain export ban.  This step would promote regional 
trade, promote increased predictability in regional grain markets, 
and facilitate market determination of prices. 
 
-- Based on the Indian aid offer, Afghanistan must cover the cost of 
transport.  We understand the Afghan government is prepared to cover 
reasonable transport costs.  But given its straitened financial 
circumstances, it is critical that the parties find the cheapest 
possible means to deliver the aid.  We believe ground transshipment 
through Pakistan would be the cheapest and fastest way to deliver 
the aid. 
 
-- Pakistani agriculture officials have raised possible 
phytosanitary concerns regarding the presence of karnal bunt fungus 
in Indian wheat.  The U.S. understands this concern is 
scientifically based.  However, we urge the three governments to 
consider creative options for overcoming this concern to enable 
prompt transshipment of the commodity. 
 
-- One way to overcome this issue would be to mill the wheat in 
India and deliver bagged flour to Afghanistan.  Milling would add to 
 
KABUL 00000505  002 OF 002 
 
 
the cost, though not excessively, we believe.  If Afghanistan is 
unable to absorb the cost of milling, perhaps India could donate a 
lesser quantity of flour without increasing the total cost of its 
donation to the GOI. 
 
-- The U.S. urges the three governments to begin or resume three-way 
consultations aimed at agreeing on delivery modalities as soon as 
possible. 
 
-- Announcement of an agreed plan for transshipping the commodity 
would make a welcome deliverable for the Regional Economic 
Cooperation Conference on Afghanistan, planned for April 1-2 in 
Islamabad.  If time is too short to achieve that, we urge the three 
governments at least to use that gathering as an opportunity to 
consult on modalities and report progress to the full conference. 
 
DELL